Apple iPhone price plummets

T-Mobile Germany has just announced it's to slash the price of the Apple iPhone in Europe - so long as you sign up to its highest price plan. In a sur

T-Mobile Germany has just announced it's to slash the price of the Apple iPhone in Europe - so long as you sign up to its highest price plan.

In a surprising move, Apple's German network partner has moved away from the unsubsidised handset price model used in all other territories, offering the 8GB version of the iPhone for just 99 Euros as of next week.

In order to qualify for the 300 Euro discount, German punters will have to sign up to T-Mobile's highest iPhone price plan, 89 Euros a month for two years.

Presumably T-Mobile have worked out a way to stop people simply buying the cheaper iPhone and unlocking it for use on other networks. Two solutions spring to mind: either require customers to sign up to the contract when they buy the iPhone, or use a cashback scheme if signing up the usual way by activating the phone at home using iTunes.

We're busily trying to find out whether O2 is planning on offering a similar discount over in the UK - or whether they intend to match T-Mobiles new low-cost contract, which offers at 249 Euro iPhone on a 29 Euro monthly package.

It is, after all, about time the iPhone's prices began to fall. As the hype begins to fade, and the competition intensifies, it's going to be increasingly difficult to encourage people to switch to Apple's touchscreen wonder.

But does that make T-Mobile's move canny marketing or a sign of desperation?

Perhaps neither. T-Mobile has announced that the special discount offer ends on the 30th June - exactly a year after the launch of the original iPhone. Could it be that  T-Mobile trying to shift its old GPRS iPhone stock before the 3G version arrives in the summer?

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